FS Investments, an alternative investment manager with approximately $26 billion in assets under management, has purchased Chiron Investment Management, a global multi-asset investment boutique. Financial terms were not disclosed.
“By adding the Chiron funds and team to the FS platform, we are better able to serve our clients with a broader set of solutions and expanded distribution,” said Michael Forman, chairman and chief executive officer of FS Investments. “Our complementary investment approaches also position us to be a leader in developing model portfolios that combine traditional and alternative strategies.”
Chiron manages three funds which will continue to be managed as standalone funds within the FS portfolio by Ryan Caldwell, co-founder and chief investment officer of Chiron. Caldwell co-managed a suite of funds at Waddell & Reed, including the Ivy Asset Strategy, as it grew from $250 million to $40 billion in assets under management.
Nearly all of Chiron’s employees have joined FS, including Enrico Gaglioti, co-founder and former chief executive officer of Chiron, who will serve as co-president alongside FS Investments chief investment officer Mike Kelly. Gaglioti will serve on the firm’s executive committee and oversee firm strategy with Kelly, as well as oversee distribution, operations and technology in his new role.
FS Investments sponsors a number of non-traded alternative investment programs including FS Credit Real Estate Income Trust (a NAV REIT), Credit Income Fund and FS Energy Total Return Fund (interval funds); and FS Multi-Strategy Alternatives (mutual fund). In addition, FS/KKR Advisor LLC, a partnership between FS Investments and KKR Credit Advisors, sponsors FS KKR Capital Corp. II, a non-traded business development company.